Arbeitspapier
Price level targeting and risk management
Many argue that, in the presence of a lower bound on nominal interest rates, central banks should use a risk management approach for setting policy, which implies commit- ting to a more expansionary policy to deal with uncertainty about the economic recovery. Using a standard model for monetary policy analysis, I study the effects of an uncertain future for both price level targeting and nominal GDP level targeting. The results clarify that, during lower bound episodes, the extent to which policy can overcome uncertainty depends crucially on the choice of policy framework.
- Language
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Englisch
- Bibliographic citation
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Series: Sveriges Riksbank Working Paper Series ; No. 302
- Classification
-
Wirtschaft
Price Level; Inflation; Deflation
Monetary Policy
Central Banks and Their Policies
- Subject
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nominal level targets
optimal discretionary policy
zero lower bound
- Event
-
Geistige Schöpfung
- (who)
-
Billi, Roberto
- Event
-
Veröffentlichung
- (who)
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Sveriges Riksbank
- (where)
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Stockholm
- (when)
-
2015
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Billi, Roberto
- Sveriges Riksbank
Time of origin
- 2015
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